Stocks plunge again to multi-year lows! (DAX forecast)

Intermediate
  • An extremely aggressive selloff by global stock averages Wednesday and overnight into Thursday reacting to ban on travel from Europe by the Trump administration.
  • The major global share indices plunged lower to multi-year lows, through the troughs from Monday, to reinforce the bear moves seen from the gaps lower on Sunday night/ Monday morning.
  • Here we focus on future on the German benchmark equity index, the DAX.

DAX future day trade outlook: Bear trend plunge and extension

A Wednesday plunge to a new bear move low and lower again overnight into Thursday, to wipe out the late 2018 swing low at 10268.5 and further long-term supports, reinforcing Monday’s large bear gap at 11092-417.5 and plunge through a key Q1 2019 support at 10856.5, to aim still lower Thursday.

  • We see a downside bias for 9723 and the new cycle low at 9600.5; a break below aims for 9510/00 and 9426, maybe key 9290 and even key 9152.5.
  • But above 9990 targets 10100/120, which we would look to try to cap; above opens risk up towards 10272.5 and maybe 10356.5.

DAX intermediate-term outlook

The late February plunge below 13219 signalled an intermediate-term shift to a bear trend.

  • Downside risks: We see an intermediate-term bear trend and risk for 9290, 9152.5 and 8690.5.
  • What changes this? Above 11417.5 sees an intermediate-term range and through 12275.5 an intermediate-term bull trend.

4 Hour DAX future Chart

dax chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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